Telkom Negotiations Progress: Exclusive Talks Ongoing for Masts and Towers Disposal

Johannesburg, 09 January 2024: Telkom reiterates its cautionary announcement issued on November 21, 2023, regarding ongoing exclusive negotiations with a preferred bidder for the potential sale of its masts and towers business housed in Swiftnet SOC Limited.

The negotiations, if successfully concluded, could significantly impact the company’s share price. As previously disclosed, the preferred bidder is a consortium of equity investors, including a Black Economic Empowerment partner, led by a prominent private equity firm.

The transaction, if finalized, would require customary approvals, including regulatory nods and Telkom shareholder consent as it falls under the JSE Limited’s Category 1 transaction category.

Telkom reports progress in fulfilling agreed milestones under the exclusivity agreement. The bidder has completed confirmatory due diligence, marking a significant step forward.

However, the company emphasizes that the exclusive negotiations may or may not result in a finalized deal. Shareholders are advised to exercise caution when trading Telkom’s securities until further announcements.

This announcement follows a period of market speculation surrounding Telkom’s potential divestment of its masts and towers business. While progress has been made, investors are advised to remain cautious until a definitive outcome is communicated by the company.